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Reverse mortgages growingElderly tapping into hidden equity nest eggToni Coleman WASHINGTON -- Juanita and Joe Sanders of St. Louis were trying to figure out how to pay for a new roof two years ago when their son came up with a suggestion: a reverse mortgage.Gannett News Service Reverse mortgages allow cash-strapped seniors to draw equity out of their homes to meet financial obligations. The Sanders -- Juanita is 81 and Joe is 97 -- were sold on the idea they could stay in the home they've owned since 1953 and not make any payments. Their mortgage will be repaid after both have died and the lender either sells the house or their children repay the loan. "At our age, we didn't want the excess baggage of a monthly payment," Juanita Sanders said. "The equity is there as a line of credit. It stays right there until I need it. It keeps me carefree, not a worry." The Sanders' reverse mortgage is among 158,000 that the Federal Housing Administration has insured since the program began in 1989. The program has become so popular -- the number of reverse mortgages has more than doubled from 2003 to 2005 -- that Congress earlier this year raised the cap on FHA-insured reverse mortgages, from 150,000 to 250,000. Two Republican lawmakers from Pennsylvania, Rep. Michael G. Fitzpatrick and Sen. Rick Santorum, have proposed eliminating the cap altogether, an idea that enjoys bipartisan support in Congress. AARP, the influential lobbying group for seniors, and the Department of Housing and Urban Development, which runs the FHA, endorse lifting the cap to meet consumer demands. FHA-insured mortgages are by far the most popular, accounting for 95 percent of the reverse-mortgage market. Once the last borrower dies, if the value of the home is worth less than the loan and accrued interest owed, the FHA insurance pays the lender the difference. The legislation's supporters note that lifting the cap on the mortgages would earn the government an additional $8 million in fees in 2007 and $39 million a year after that. Those fees, about 5 percent of the value of the loan, are one of the disadvantages of reverse mortgages. Another is that interest accrues over the life of the loan, coming due at the end. Heirs have to repay the loan and interest if they want to keep the family home. Seniors groups generally support proposals to make reverse mortgages available to more elderly homeowners. But they're also concerned that there is growing sentiment inside and outside Congress for requiring seniors to use money from the mortgages to pay for long-term health-care needs. As the baby boomer population ages, the mortgages are increasingly seen as a way to relieve states and the federal government of the burden of paying for seniors' in-home care and nursing home care. The Fitzpatrick-Santorum proposal "seems, at first glance, to be part of a growing movement to force seniors to use home equity in order to pay for their long-term care costs," said Gene Coffey, a staff attorney with the National Senior Citizens Law Center in Washington. "That is not necessarily a good thing." Advocates for seniors also are concerned about a measure, not yet in effect, that would give seniors a 2 percent discount on their FHA insurance if they use the proceeds from a reverse mortgage to buy a long-term-care insurance policy. Roy Green, a lobbyist for AARP, notes a potential problem: Insurance policies that expire before policyholders use them would leave those seniors with no equity in their homes and nothing to show for it. ![]() StoneWolfe Financial - Des Peres, MO 63131 Office Phone: 800-481-0819 Fax: (314) 317-8718 Cell Phone: 314-422-1125 Missouri Relocation, St Louis Real Estate, St Charles Real Estate, san louis o san bienes raíces de mo de charles, MO Homes For Sale, Home For Sale In St Louis MO, missouri home search, Top Missouri Realtors®, st charles real estate, Best Realtor in St Chalres MO, St Charles Real Estate, St Louis Real Estate, Best Realtor in St Louis MO,St Charles MO Homes For Sale Home Search, St Louis Mo Real Estate, Saint Charles MO Realtors®, Chesterfield MO Real Estate,o fallon home loans, top realtor in st louis st charles, ofallon home loans, St Louis MO REALTORS®,wentzville real estate, top real estate agents in lake st louis, Missouri Home Search, Relocating to St Louis Missouri,Saint Charles MO Homes For Sale, saint louis real estate, top st louis realtor,top st charles realtor, Saint Louis MO Homes For Sale home search, Wildwood Real Estate,Winghaven Homes, Turtle Creek Homes, saint charles missouri schools, bilingual missouri real estate agents, Canvas Cove Homes, Monticello Homes,Manchester ,O'Fallon MO Homes For Sale home search, O Fallon MO Home For Sale home search, Homes For Sale In O Fallon MO, St Charles Mo Homes Real Estate home search,St Louis Homes, Lake St Louis MO Homes, st louis missouri real estate agents, top st louis real estate agent, Missouri Mortgage Companies, St Louis County,find a home in st louis, Homes For Sale In Lake St Louis MO, Wentzville MO Homes For Sale, Missouri Homes For Sale, Homes For Sale In Wentzville Mo, Homes For Sale In Missouri, assit 2 sell,find a home in chesterfield, Chesterfield Mo Homes, Missouri Real Estate, real estate in st louis mo, st peters real estate, lake st louis real estate, 2 Sell St Louis, 2 Sell St Charles, Buying a home in Missouri, mo low commission real estate, Selling a Home In Missouri, Prudential Realtors®, ballwin real estate, Prudential Patterson REALTORS® st Louis Mo, st charles real estate agents,Prudentil Patterson St Charles MO, Prudential Patterson, Chesterfield Real Estate,REALTORS® O Fallon MO,#1 Listing Agent in St Louis, Prudential Patterson Relocation, Ellisville Real Estate,Chesterfield Mo Homes For Sale Home Search, Homes For Sale In Chesterfield Mo, st louis real estate agent, st charles home loans, Ballwin Mo Homes For Sale Home Search, Homes For Sale In Ballwin MO, Ellisville Mo Homes For Sale, Find Homes In St Louis MO, find a home in wentzville,mo discount realtors,Homes For Sale In Ellisville MO, Creve Coeur Mo Homes For Sale, top missouri realtor, Homes For Sale In Creve Coeur Mo, Town and Country Homes For Sale home Search, Homes For Sale In Town and Country MO, Missouri Sellers Agents,Town Country Real Estate ,Missouri Buyers Agents, St Albans MO Homes for Sale Home Search, Homes For Sale In St Albans MO, Wildwood Mo Homes, Homes For Sale In Wildwood MO, St Peters MO, Augusta MO Homes, Augusta Real Estate, New Melle Real Estate,# 1 st charles real estate agent ,Homes For Sale in New Melle MO, Sell My St Louis MO House, Sell My St Charles County home, Top Missouri Realtor.
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